S&P cuts Omnova outlook to negative

Standard & Poor's said it revised its outlook on Omnova Solutions Inc. to negative from stable.

At the same time, the agency said it affirmed all of its ratings on the company, including the B+ corporate credit rating.

The outlook revision reflects the continued weaker-than-expected operating performance because of elevated raw material costs in fiscal 2007 and the first quarter of 2008, S&P noted, adding that these conditions have resulted in some weakening of the financial profile against the level it considers appropriate for the current ratings.

The negative outlook also incorporates S&P's view that raw material cost escalation will continue to create a difficult operating environment, especially in light of weak economic conditions and a housing slowdown.

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